Finance Monthly. 6 THE MONTHLY ROUND-UP News You Can’t Afford to Miss The Monthly Round-Up CASH IS KING (AGAIN) Nearly half (46%) of Brits are using cash more now than they were 12 months ago, with cash usage rising more sharply among younger Britons ages 1834 in the last year (61% vs. 47% ages 45-54 and 33% ages 55+). According to a new study commissioned by smart money platform Credit Karma UK, the rising cost of living is prompting many to pay with physical money more often. Three in 10 Brits who are using cash more now compared to 12 months ago (30%) say it is because they need to be more mindful of their spending given the higher cost of living. Additionally, some are doing so because they want to avoid racking up debt (18%), while others are doing so to avoid accruing interest on purchases (11%) and banking fees (11%). Meanwhile, about 1 in 5 younger adults who use cash more now compared to 12 months ago (21%) are doing so because they have more control when they use cash. Many are also concerned about the impact that credit card use will have on their long-term financial standing, as one in five (19%) are using cash more now to protect their credit score. Social media trends could also be behind the recent cash boom. Nearly three quarters (70%) of younger Britons have at least heard of the social media financial trend of “cash stuffing’’, which is setting aside physical cash for different spending categories at the beginning of each month. However increased dependence on cash doesn’t come without its challenges. Over 300 more high street bank closures are expected throughout 2023, which could make accessibility even more of an issue.1 And, in some cases, dependence on physical money can lead to disassociation with spending. A third (32%) of younger adults who use cash more now compared to 12 months ago claim it is because paying with cash feels like free money as there is no digital trace of the transaction, which can make budgeting for fixed monthly expenses more difficult in the long run Younger Britons use more physical currency now compared to 12 months ago
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